Linked by Thom Holwerda on Wed 23rd Jan 2013 22:09 UTC
Apple "Apple Inc reported quarterly revenue that slightly missed Wall Street expectations as sales of its flagship iPhone came in below target, sending its shares down more than 4 percent. The world's largest technology company shipped 47.8 million iPhones, lower than the roughly 50 million that Wall Street analysts had predicted. Sales of the iPad came in at 22.9 million in the fiscal first quarter, about in line with forecasts." I'll leave the financials to the experts, but one thing that stood out to me: Apple sold 4.2 million Macs, almost a million below expectations. How much of a future does desktop computing have at Apple? Update: The NYT/Reuters changed the title during the night. Fixed it.
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RE: Ridiculous expectations
by ndrw on Thu 24th Jan 2013 00:03 UTC in reply to "Ridiculous expectations"
ndrw
Member since:
2009-06-30

Predicting is the *main* function of financial markets. Investors put their money at work because they expect earnings, so when they are inaccurate in their predictions there must be a correction.

This is a good mechanism. When working correctly, it transfers resources to places that use them most effectively (like Apple a couple of years ago). It also helps to absorb shocks - people expect e.g. oil to run out so its prices are growing *now*, encouraging investment and saving, and discouraging consumption.

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